Justice Department charges Apple, big five publishers for e-book price fixing. | TigerDroppings.com

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SG_Geaux
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Justice Department charges Apple, big five publishers for e-book price fixing.





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dyslexiateechur
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re: Justice Department charges Apple, big five publishers for e-book price fixing.


I don't get it?





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SlowFlowPro
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re: Justice Department charges Apple, big five publishers for e-book price fixing.


how can you wholesale e-books?





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Sophandros
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re: Justice Department charges Apple, big five publishers for e-book price fixing.


Price fixing is illegal.

This has been in the works for months, BTW.






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dyslexiateechur
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re: Justice Department charges Apple, big five publishers for e-book price fixing.


What happened though? They just agreed not to put stuff on sale??





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SG_Geaux
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re: Justice Department charges Apple, big five publishers for e-book price fixing.


quote:

how can you wholesale e-books?



From another article... gives a little insight to the difference.

quote:

Well, it looks like the last major holdout from Apple's iBookstore could soon be joining its rivals on iOS devices -- Random House announced today that it's abandoning its current pricing model for e-books in favor of the so-called "agency pricing" that Apple insists on. That model requires publishers to set the retail prices of their books with the bookseller getting a 30 percent cut of each sale -- as opposed to the traditional wholesale model that lets retailers set the price of books and even sell them at a loss (as Amazon has done in the past). As the Wall Street Journal notes, the agency model has been criticized by some (including Random House previously) for effectively eliminating discounting and guaranteeing retailers a profit on each book they sell. Of course, Random House hasn't yet officially announced that it will be joining the iBookstore ranks, but this news does certainly line up nicely with a little event tomorrow.





This post was edited on 4/11 at 9:43 am


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SlowFlowPro
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re: Justice Department charges Apple, big five publishers for e-book price fixing.


quote:

Price fixing is illegal.

something i have an issue with

but in this instance it seems like they were price-fixing to make the goods cheaper (to compete with amazon). that seems to be good for consumers

the only thing i've read about this is the small article posted. how is the system they want (with commission) more likely to engage in price fixing than the "wholesale" method? seems like WSM is more prone to collusion






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slackhouse
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re: Justice Department charges Apple, big five publishers for e-book price fixing.


please let this be the beginning of .99 ebooks.





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WikiTiger
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re: Justice Department charges Apple, big five publishers for e-book price fixing.


but Apple is benevolent. They would never do such a thing.





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WikiTiger
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re: Justice Department charges Apple, big five publishers for e-book price fixing.


quote:

quote:

Price fixing is illegal.



something i have an issue with


right. a truly free market should allow for all forms of price fixing. the market will react and correct itself.


but i do find it funny that Apple is getting hit with these charges






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dyslexiateechur
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re: Justice Department charges Apple, big five publishers for e-book price fixing.


I don't get why any of this is illegal. If I'm selling a good on consignment and I want xx amount for it, what is wrong with this??





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slackhouse
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re: Justice Department charges Apple, big five publishers for e-book price fixing.


quote:

how is the system they want (with commission) more likely to engage in price fixing than the "wholesale" method? seems like WSM is more prone to collusion

amazon and barnesandnoble wanted to sell ebooks for .99. they have been forced to sell those same books for the same price as hardbacks (over $10/file). Apple convinced the big 5 to change to this model so that both Apple and the big 5 could make more money. They essentially colluded to stop Amazon and Barnes and Noble from being able to sell the ebooks at whatever size they wanted.






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SG_Geaux
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re: Justice Department charges Apple, big five publishers for e-book price fixing.


quote:

the only thing i've read about this is the small article posted. how is the system they want (with commission) more likely to engage in price fixing than the "wholesale" method? seems like WSM is more prone to collusion


Because the publishers themselves set the retail price in one, so the publishers get 30% commission and will naturally want to price the books higher so they make more profits.

As opposed to the retailer like Apple or Amazon setting prices.


Either one could easily lead to collusion.



This post was edited on 4/11 at 9:48 am


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WikiTiger
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re: Justice Department charges Apple, big five publishers for e-book price fixing.


quote:

I don't get why any of this is illegal. If I'm selling a good on consignment and I want xx amount for it, what is wrong with this??


Nothing. It's just that our politicians and populace don't truly want a free market economy.






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SlowFlowPro
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re: Justice Department charges Apple, big five publishers for e-book price fixing.


quote:

but i do find it funny that Apple is getting hit with these charges

i find it funny that apple's model seems to be much more "market" than the model amazon is using, but apple is getting prosecuted






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SG_Geaux
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re: Justice Department charges Apple, big five publishers for e-book price fixing.


Far better than my explanation.

quote:

amazon and barnesandnoble wanted to sell ebooks for .99. they have been forced to sell those same books for the same price as hardbacks (over $10/file). Apple convinced the big 5 to change to this model so that both Apple and the big 5 could make more money. They essentially colluded to stop Amazon and Barnes and Noble from being able to sell the ebooks at whatever size they wanted.







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SlowFlowPro
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re: Justice Department charges Apple, big five publishers for e-book price fixing.


quote:

Because the publishers themselves set the retail price in one, so the publishers get 30% commission and will naturally want to price the books higher so they make more profits.

i guess i just don't get the issue with this

if they don't react to the market, they won't sell shite (b/c their price will be too high). if the retailers can't move the books, then they will get out of the deal b/c they won't sell shite and get their 70%

quote:

Either one could easily lead to collusion.

possibly, but they will only become effective if their prices are competitive






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slackhouse
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re: Justice Department charges Apple, big five publishers for e-book price fixing.


quote:

If I'm selling a good on consignment and I want xx amount for it, what is wrong with this??

that would be fine. the charge is that Apple and 5 publishers got together and all decided to raise the cost of ebooks at the exact same time. That is different than one company deciding what to do. if one publisher started charging 5x-10x for ebooks, while the others remained the same, that one publisher would lose a ton of clients (authors) and many customers. Instead, they all play along and profit for everyone; no competitiveness; = screwed customers.






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SG_Geaux
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re: Justice Department charges Apple, big five publishers for e-book price fixing.


quote:

if they don't react to the market, they won't sell shite (b/c their price will be too high). if the retailers can't move the books, then they will get out of the deal b/c they won't sell shite and get their 70%


If everyone is forced to sell at the same prices then people have no choice but to pay those prices if they want to read the books.

Amazon and Barnes want to sell the books cheaper, which is obviously better for the reader, and they are not being allowed to.



This post was edited on 4/11 at 9:53 am


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dyslexiateechur
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re: Justice Department charges Apple, big five publishers for e-book price fixing.


Exactly...people will just not buy as many books of prices are high. Or they'll illegally download them.





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